Steve Kelley: Yes. So, first, let me just start with the general approach to M&A that we have, and then I’ll zero-in on Industrial and Medical. So, I think, first of all, we’re fortunate that we’re a consistent cash generator even in down cycles, we generate a lot of cash. So, it gives us the ability to make strategic investments and to go on the hunt for acquisitions. So, the types of targets we’re looking for are going to be primarily in the Industrial and Medical space. We’re looking for targets that are a good strategic fit, that are clearly accretive from a financial standpoint, and have a reasonable payback period. We look for companies with strong technology and/or a solid product portfolio, preferably with a significant percentage of revenue coming from sole-source products similar to our portfolio and we look for long life cycle products and technologies.
So, within Industrial and Medical, we are looking for larger acquisitions, if possible. And we intend to integrate those acquisitions quickly, like we did last year with SL Power. I think that acquisition worked out pretty well for us, very complementary portfolios and helped us a lot in the medical area in particular. I think the biggest hurdles we’re looking at now in M&A are just valuations. These valuations are influx and so it’ll probably take longer than we would expect to get a deal done. But I think the important thing to realize is we’re not in a rush to make a deal. So, we’re going to maintain financial discipline. But we got nearly $1 billion sitting on our balance sheet. So, we have a lot of dry powder and I think we’re an attractive acquirer.
Jim Ricchiuti: Thanks very much. I’ll jump back in the queue. Thank you.
Steve Kelley: Thank you, Jim.
Operator: Our next question is from the line of Krish Sankar with TD Cowen. Please proceed with your question.
Krish Sankar: Yes, hi. Thanks for taking my question. I have two of them. First one, maybe a two-part question on semi. Paul or Steve, you said semi revenues bounce on this level, so is it fair to assume flattish sequentially for December? And then along the same path, Steve, you mentioned that the semi revenue grew strong in ion implant, not dep and etch. And it seems like ion implant is more levered to mature technologies in silicon carbide. If that is true, can you help us understand how much of your semi revenue or even ion implant came from mature versus compound semi? And then I have a follow-up.
Steve Kelley: Sure. I’ll start and you can finish Paul. So basically, what we see in the entire year Krish is there has been weakness in the etch and dep market. The overall volume has been weak, and that’s well known. We’ve been able to offset some of that weakness in three ways. One was with our service business, which has been very robust this year; the second is with design wins, which have been ramping; and the third is in the high-voltage area. And your specific question about high-voltage and where it’s used? It is primarily ion implanters and to the best of my knowledge, the vast majority of that is going for mature technologies, silicon carbide as well as silicon technologies. It’s there to meet the surge for high-voltage technologies or for EVs and other types of applications. So, that’s about where we stand with high-voltage.
Paul Oldham: Yes, I guess more broadly, what we said is that we still expected that semiconductor would be flat to up a little for the second half versus the first half. So, you can kind of take a look at the math there. But yes, I think bouncing around these levels, I think, is accurate. If you look at that math, you’re probably flat or up a little bit in Q4. And look, as we’ve talked with our customers, I think they’ve generally said they expect business to be about flat as we look into 2024. But at the same time, we’ve worked hard to be, I’ll say, financially prudent in terms of how we planned our business, but also be operationally prepared because we realize that when the semiconductor starts to turn, it can turn quickly and so we’re prepared if we see the business start to rebound more quickly over the course of next year.
